Tube Investments of India Ltd
Directors Reports
Dear Shareholders,
The Directors take pleasure in presenting the 15th Annual Report together
with the audited financial statements of the Company for the year ended 31st
March 2023.
1. Business Environment
The financial year 2022-23 was a challenging year for the global economy starting with
the conflict between Russia and Ukraine leaving the oil/energy prices to go up
significantly. This was followed by inflation due to increase in the prices of commodities
across the globe and energy crisis. Most of the major economies witnessed unprecedented
inflation rates in its history and all the central banks started continuously raising the
interest rates. Due to increasing oil prices, the US dollar had gained against all
currencies which resulted in inflationary pressures on emerging economies who are import
dependent and the chain effect continued. The aforesaid developments in the global economy
influenced and posed a downside risk to the Indian economy. The erratic climate conditions
including unseasonal rains also affected the food supply and resulted in increased food
inflation in India during FY 2022-23. Consequently, Reserve Bank of India continued to
increase the repo rates to tame the inflation within the upper tolerance limit. In spite
of all the headwinds, India continued to be the fastest growing major economy for FY
2022-23 @ 7.2% as a result of the strong macro-economic fundamentals, domestic consumption
and increase in exports. The Indian economy is projected to grow at around 6.3% in FY
2023-24 amid global headwinds and rising costs. This is mainly driven by private
consumption and private investments backed by supportive Government policies to improve
the infrastructure and business ecosystem. The Government has indicated that to sustain
the current growth trajectory, structural changes for ensuring financial discipline and
compliance will be introduced. The digital infrastructure expansion, implementation of
production linked incentive schemes have incentivised the corporates for setting up of
infrastructure for sustained growth in the future.
The latest episodes of banking sector crisis across the major economies have exposed
the financial risks faced not only by these countries but also globally. Also, with the
fear of recession looming large at the world, 2023-24 is expected to be an even more
challenging and turbulent year. However, it is expected that the Indian economy will
remain insulated to some extent due to its strong domestic demand and sound macro-economic
fundamentals.
The automotive industry, a sector in which the Company has a large exposure, has
witnessed a healthy revival in FY 2022-23 and is expected to carry forward similar
momentum going forward. The Government's push for capital outlay of `2.4 lakh crores for
railways as part of the Union Budget, will be favourable to the Company which expects its
railways business to benefit out of this spend. Further, other announcements to boost
domestic manufacturing, promote exports and green energy will be advantageous to the
Company.
Reserve Bank of India has finally paused the rate hike after six consecutive increases
in April 2023. It is an indicator of the strong resilience shown by the Indian economy.
Though there appears to be a pause in the investment climate, it is expected that a mix of
cautious and necessary investments will still continue through this financial year which
may help the Indian economy to continue its growth momentum.
2. Standalone Financial Highlights
`Rs in Cr.
Particulars |
2022-23 |
2021-22 |
Sale of Products |
6,791.61 |
5,986.79 |
Profit Before |
|
|
Exceptional Items and |
928.29 |
628.04 |
Tax |
|
|
| Exceptional Items |
(52.72) |
- |
Profit Before Tax |
875.57 |
628.04 |
| Tax Expense |
(210.37) |
(152.87) |
Profit After Tax |
665.20 |
475.17 |
The Board of Directors has decided to retain the entire amount of profit for the
financial year 2022-23 in the Statement of Profit and Loss.
3. Performance Overview
During 2022-23, the Company has achieved a turnover of `6,792 Cr., registering a growth
of 13% over the previous year. The Profit before Depreciation, Interest, Exceptional Items
and Tax was at `1,095 Cr. as against `785 Cr. in the previous year. The Profit before Tax
and Exceptional Items was at `928 Cr. as against `628 Cr. in the previous year.
The Engineering segment registered a revenue of `4,562 Cr. as compared to `3,868 Cr.
during the previous year, a growth of 18%. The operating profit before interest and tax
stood at `549 Cr. as compared to `376 Cr. during previous year, a growth of 46%.
The Metal Formed Products segment recorded a revenue of `1,424 Cr. as compared to
`1,240 Cr. during the previous year, a growth of 15%. The operating profit before interest
and tax stood at `174 Cr. as compared to `136 Cr. during previous year, a growth of
27%.
The Mobility segment recorded a revenue of `800 Cr. as compared to `963 Cr. during
previous year, a de-growth of 17%, due to adverse market conditions. The operating profit
before interest and tax stood at `17 Cr. as compared to `55 Cr. during the previous year.
Other businesses segment including Industrial Chains registered a revenue of `768 Cr as
compared to `562 Cr. during the previous year, a growth of 37%. The operating profit
before interest and tax stood at `48 Cr. as compared to `36 Cr. during previous year, a
growth of 31%.
4. New business initiatives
4.1. Clean Mobility business: TI Clean Mobility Private Limited
The Company had incorporated M/s. TI Clean Mobility Private Limited
("TICMPL") in February 2022 as a wholly-owned subsidiary to focus on clean
mobility solutions. TICMPL is pursuing electric three-wheelers business and has launched
the passenger three-wheeler in the market. TICMPL is also developing cargo and e-rick
variants, which are expected to be launched in the second half of FY 2023-24. In March
2022, TICMPL had acquired 69.95% of M/s. Cellestial E-Mobility Private Limited
("CEMPL"), manufacturer of electric tractor, for `161 Cr. During the year,
TICMPL had acquired the balance 30.05% for `51 Cr. making it a wholly-owned subsidiary.
CEMPL is in the advanced stage of introducing electric tractors in the market. A new
manufacturing facility is coming up at Poonamalle, near Chennai for electric tractors.
During the year, TICMPL had acquired 65.2% of the equity share capital of M/s. IPLTech
Electric Private Limited ("IPLT"), a company engaged in manufacturing of
electric heavy commercial vehicles for `245 Cr., through a combination of primary and
secondary purchase of shares. IPLT is the first manufacturer for 55T electric truck
predominantly used in steel and cement industry for short haulages. IPLT is awaiting
necessary approvals, under the new and revised guidelines, for launch of electric heavy
commercial trucks and is expected to expand rapidly in FY 2023-24. A dedicated facility
with automated assembly line is coming up near Manesar. The unique selling proposition
offered by IPLT to its customers includes reduction in logistics cost, higher uptime and
comprehensive annual maintenance. IPLT is working on development of other variants to
cater to different customer segments and enhancing its presence. As of 31st
March 2023, TII has invested `250 Cr. towards Equity Shares and `167 Cr. towards
Compulsorily Convertible Preference Shares ("CCPS") in TICMPL. TII and TICMPL
entered into definitive agreements with M/s. Multiples Private Equity Fund III
& M/s. State Bank of India (together "Investors") for raising about `600
Cr. through issue of Equity Shares and CCPS. The Investors have so far invested about `400
Cr. towards 100 Equity Shares and 4,00,00,000 Series A1 CCPS. Pursuant to the said
agreement, TII has agreed to invest `425 Cr. towards CCPS and has already invested `167
Cr. 16700000 Series B CCPS. On 5th May 2023, TICMPL entered into definitive
agreements with TII, M/s. Multiples Private Equity Fund III, M/s. Multiples Private Equity
Fund IV, M/s. Multiples Private Equity Gift Fund IV and their co-investors
(together "Investors") for raising about `600 Cr. through issue of Equity Shares
and CCPS to Investors and `75 Cr through issue of CCPS to TII.
4.2. Foray into Contract Development and Manufacturing Services
The Company has identified contract development and manufacturing operation
("CDMO") and active pharmaceutical ingredients as a new line of business with
the potential to grow and expand in the future. The approval of the Members was obtained
for amendment to the Memorandum of Association of the Company on 16th April
2023 to include this business in the Objects Clause.
The Company had entered into an agreement with Mr. N Govindarajan, an experienced and
well recognised professional in the Indian pharmaceutical industry to incorporate a
subsidiary for pursuing the CDMO business. Pursuant to the said agreement, the Company
proposes to invest up to `285 Cr. into this subsidiary in the form of equity and
compulsorily convertible preference shares in tranches and Mr. N Govindarajan will
be investing up to `15 Cr. in equity and compulsorily convertible preference shares in
tranches. Subject to the performance and other terms and conditions specified in the
agreement, Mr. N Govindarajan will be entitled to get up to 25% of the equity for
his investment. The CDMO subsidiary, M/s. 3xper Innoventure Limited, was incorporated on
12th May 2023.
The CDMO subsidiary is finalising a strategic location for establishment of the
manufacturing facility. The R&D facility is coming up at Chennai.
4.3. Acquisition of M/s. Lotus Surgicals Private Limited, a medical devices company
The Company joined hands with M/s. PI Opportunity Fund I Scheme II ("Premji
Invest") to acquire M/s. Lotus Surgicals Private Limited ("Lotus").
TII acquired 33,61,902 equity shares representing 67% of the share capital for about `233
Cr. and Premji Invest acquired 16,55,862 equity shares representing 33% of the share
capital for about `115 Cr. on 10th May 2023. Lotus is a subsidiary
company under Section 2(87) of the Companies Act, 2013 with effect from the date of
acquisition (10th May 2023). Lotus will be vehicle for medical devices business
of TII.
Lotus was incorporated in 2005 and is engaged in the business of manufacturing and
supply of surgical sutures & other medical devices. It has a comprehensive product
portfolio focused on high end specialties such as cardiac, liver transplant, GI oncology
and bariatrics. Lotus is the second largest domestic player in the aforesaid segments. The
product portfolio includes sutures, mesh, skin staplers, laparoscopy instruments, energy
devices etc. It has state of the art manufacturing facility and is also setting up
in-house needle manufacturing capabilities.
4.4. Acquisition of M/s. Moshine Electronics Private Limited
The Company as part of its foray into electronics business, acquired 20,66,628 equity
shares representing 76% of the share capital of M/s. Moshine Electronics Private Limited
("Moshine") on 23rd September 2022. Moshine is engaged in manufacture
and sale of camera module for mobile phones. Moshine is engaging with new customers for
growth in FY 2023-24.
5. Business Review – Standalone 5.1. Engineering TI's Presence
The Engineering segment of the Company consists of cold rolled steel strips and
precision steel tubes viz., Cold Drawn Welded tubes (CDW) and Electric Resistance Welded
tubes (ERW). These products primarily cater to the needs of the automotive, boiler,
bicycle, general engineering and process industries. The Company is further engaged in the
manufacture of large diameter welded tubes mainly for non-auto application which are
largely imported.
Industry Scenario
During 2022-23, the automotive industry's production volume grew by 13%. Passenger
vehicle and commercial vehicle grew by 25% and 29% respectively and two-wheeler segment
grew by 9% over the last fiscal year.
Review of Performance
The Engineering segment was able to grow its volumes leveraging the growth of passenger
vehicles and commercial vehicles. The business also focussed and realized the increased
opportunities in the export market. The volumes of tubes grew by 13%, cold rolled steel
strips business grew by 6% and large diameter tubes grew by 12%. The business continued to
drive efficiency improvement and spending capital expenditure prudently on critical growth
projects. The business is in the process of increasing capacities for large diameter tubes
and Cold Rolled steel strips to meet the increased market demand.
The business started Lean implementation for eliminating/reducing wastes in the value
chain by focussing on productivity & quality improvement, inventory reduction &
creating a flow in production system using Lean tools & techniques.
Career path initiatives were taken up to provide opportunities to employees within the
organization for new openings and to enable cross function exposure and growth.
The business continued to participate in the reviews of US Department of Commerce on
complaint of alleged dumping of cold-drawn steel mechanical tubes from India and some
other countries, the Countervailing Duty (CVD) and Anti-dumping Duty (AD) on the Company's
exports to the US market, to reduce duty rates to enhance export volumes.
5.2. Metal Formed Products TI's presence
Automotive chains, fine blanked products, roll-formed car doorframes and shell
sub-assemblies for passenger coaches constitute the Metal Formed Products segment.
Industry scenario
During 2022-23, production of two-wheeler segment grew by 9.2% and passenger cars grew
by 18.4%. FY 2022-23 is the first full year of business without any disruption post
pandemic. Continuing from the last year, the business was faced with increase in steel
prices, increase in the input costs and inflation during first half of the year. During
second half of the year, steel prices began softening. The business continued to prove its
mettle by taking advantage of economies of scale, prudent capital spending, operating with
an optimum working capital along with control on the costs through various cost reduction
measures. Lean initiatives are being driven through inculcating kaizen culture in all the
areas.
With international car majors continuing to invest in the country and increasingly
using India as an export base, many component manufacturers have the opportunity to cater
to the global needs of automobile manufacturers and their Tier 1 Suppliers. The Railways
business continued to go through a subdued phase as demand continues to be at lower
levels.
Review of Performance
Backed by the demand in the four-wheeler segment, the business dependent on these
segments did extremely well. Despite the two-wheeler industry volume not reaching the
pre-pandemic level, business maintained its market share in key segments. The Company
continued to focus in the aftermarket segment benefiting from the two-wheeler population
growth. The replacement market continues to provide opportunities for growth
notwithstanding good competition and the business expects to strengthen on the sales
structure, deepen its coverage and launch new products for new categories.
Fine blanking and Doorframe sales were higher by 26% during 2022-23 and the business
manages to hold on to the market due to good traction seen in four wheeler segment. The
businesses continue to gain additional market share by maintaining high quality standards
and customer satisfaction. The focus has been on generating more new businesses from the
Original Equipment Manufacturers (OEMs) / Tier 1 Suppliers to OEMs by value addition and
cost competitiveness. The business is also focused on exploring new products /
technologies for growth in the top line. In addition, increased volumes and increased
price realisation in coach parts, focus on metros and expanding the customer/product base
are some of the driving factors that will put the Railways business back on track.
5.3. Mobility Business TI's Presence
Mobility segment of the Company comprises of bicycles of Standards and Specials
including alloy bikes & performance bikes, cycling accessories, bicycle components
sold as spares and home/semi commercial fitness equipment. This year the scope of business
has expanded by introducing SMART
- Spares Maintenance Accessories Recreational Toddler. Company has also embarked on the
export business as a growth lever/strategy.
Industry Scenario
Bicycles fall under two distinct categories – Standards and Specials. While
standard cycles are largely used for commuting, especially in small towns & rural
areas, special cycles cater to recreational usage, where the product is used for fun,
fitness, and leisure activities. During the financial year, the organised trade industry
witnessed a decline of 12% as against the previous year. Standards segment dropped by 2%
and specials segment by about 16%.
Consumer demand continued towards economy range of products and unbranded players with
low priced products gained an edge in the industry. To counter the penetration of
unbranded players, playing on price, the organised players i.e., AICMA (All India Cycle
Manufacturer's Association) have ventured into launching low priced products in Kids and
Mountain Terrain Bikes ("MTB") segments. FY 2020-21 witnessed a pent-up demand
in cycles due to lockdown of schools, workplaces, and fitness centres. However, in the
current scenario, the usage of cycles has significantly reduced due to resumption of all
activities leading to a drop in demand.
Over 60% of the country's requirements are met by four major players. The smaller
regional players and imports constitute the balance. TI Cycles enjoys a share of about
25.1% of the total organised trade market.
Review of Performance
TI Cycles sold 17 lakh bicycles during the year in trade, which was lower by 16%
compared to previous year. Overall Trade bicycle industry itself registered de-growth
of 12% over the previous year. The thrust on Specials segment was driven through frequent
new product launches, product innovations, enhanced digital marketing and superior
consumer experience through exclusive retail outlets under the exclusive retail brand
‘Track & Trail' and a new concept "Star MBO"- a shop-in-shop
experience leveraging multi-brand outlets. We have opened 45 of such shops during last
year. Expansion of export business and domestic spares business are considered to be new
avenues of business to the Company. To participate in the growing economy sub-segment, 5
economy products were launched in major categories like Kids and MTB.
In 2022-23, 49 new model bicycles were launched, and 55 models were refreshed. 33% of
the trade sales volume came from new products. We have lined up 7 launch ready innovations
- such as knuckle guard light, saddle sensor light, balenso, agresso, dirt tricks, buddy
back rest, integrated utility solution slated to be launched during 2023-24.
On the consumer outreach front, we ran digital, influencer campaigns for its major
brands, with BSA, Hercules, Roadeo, and Montra delivering a significant lift in brand
awareness. We have started various demand generation offline activities. The objective of
the campaigns/demand generation activities was to increase brand awareness and product
consideration among the target group.
6. Dividend
The Board of Directors declared an Interim Dividend of `2/- per share (@ 200%) on
equity share of face value of `1/- each for the financial year 2022-23, which was paid on
27th February 2023 to all the eligible shareholders. `1.50/- per share (@ 150%)
of Final Dividend has been proposed by the Board for the said financial year and together
with the Interim Dividend of `2/- per equity share, already declared and paid, in respect
of the financial year 2022-23, `3.50 per share (@ 350%) will be considered as the total
Dividend for the said financial year.
The dividend pay-out is in line with the Company's policy on Dividend Distribution. The
Company has proposed to conserve cash for the capital expenditure and funding
requirements. The said Policy as approved by the Board is uploaded and is available on the
following link on the Company's website: https://tiindia.com/dividend-distribution-policy/
7. Share Capital
The paid-up Equity Share Capital of the Company as on 31st March 2023 was
`19,31,21,076/- consisting of 19,31,21,076 Equity Shares of the face value of `1/- each
fully paid up. During the financial year 2022-23, the Company allotted 1,70,855 equity
shares consequent to exercise to employees stock options.
8. Finance
Cash and Cash Equivalents as at 31st March 2023 were `111 Cr. In addition,
Company has investments in Liquid Schemes of Mutual Funds for `293 Cr.
The Company continues to focus on judicious management of its working capital. The
Company has taken many steps during the year to improve the working capital turns. The
working capital parameters were kept under strict check through continuous monitoring.
8.1. Non-Convertible Debentures
During the year, Non-Convertible Debentures (NCDs) aggregating `50 Cr. were redeemed by
the Company. As at 31st March 2023, there are no NCDs outstanding.
8.2. Deposits
The Company has not accepted any fixed deposits under Chapter V of the Companies Act,
2013 and as such no amount of principal and interest were outstanding as on 31st
March 2023.
8.3. Particulars of Loans, Guarantees or Investments
As per Section 186 of the Companies Act, 2013, details of the loans, guarantees and
investments made during the FY 2022-23 are given below:
Name of the |
Nature of transaction - |
`Rs in Cr. |
Companies |
|
|
|
Loans/Investments |
|
TI Clean Mobility Private Limited |
Investment in equity shares |
150.00 |
|
Investment in Compulsorily Convertible Preference Shares |
167.00 |
|
Inter-Corporate Deposits / Loans |
325.00 |
Moshine Electronics Private Limited |
Acquisition of equity shares from the existing shareholders |
7.38 |
|
Inter-Corporate Deposits / Loans |
3.75 |
X2Fuels and Energy Private Limited |
Investment in equity shares |
6.15 |
CG Power and Industrial Solutions Limited |
Conversion of share warrants to equity shares |
54.72 |
The aforesaid investments are in compliance with Section 186 of the Companies Act, 2013
and used for the business activities by the respective companies. Further details form
part of the Notes to the financial statements provided in this Annual Report.
As part of treasury management, the Company also deploys any short-term surplus in
units of mutual funds, the details relating to which form part of the Notes to the
financial statements provided in this Annual Report.
8.4. Consolidated Financial Highlights |
|
|
|
`Rs in Cr. |
Particulars |
2022-23 |
2021-22 |
Revenue from contract with customers |
|
|
|
14,430.95 |
11,982.53 |
(net) |
|
|
Profit / (Loss) Before share of Profit / |
|
|
Loss of Associates / Joint Ventures, |
1,592.51 |
1,111.15 |
Exceptional Items and Tax |
|
|
| Exceptional items |
8.06 |
20.21 |
Profit / (Loss) Before share of Profit / Loss |
|
|
|
1,600.57 |
1,131.36 |
of Associates / Joint Ventures and Tax |
|
|
| Tax Expense |
422.59 |
160.83 |
Profit / (Loss) Before share of Profit / |
|
|
|
1,177.98 |
970.53 |
Loss of Associates / Joint Ventures |
|
|
9. Business Review – Subsidiaries and Joint Venture 9.1. Shanthi Gears Ltd (SGL)
SGL, a subsidiary of the Company, recorded revenue of `446 Cr. in 2022-23 against `337
Cr. in the previous year. Profit before tax was `90 Cr. (Previous year: `59 Cr.). During
the year, SGL renewed its focus on re-establishing itself in the market and gaining new
customers. SGL continued to look at enlarging its market presence, create a robust
channel, enhance its process capabilities and launch new products to meet the growing
expectations of customers.
SGL also declared and paid an Interim Dividend of `3/- per share for the financial year
2022-23.
9.2. Financi?re C10 SAS (FC10)
FC10, the Company's wholly owned subsidiary in France, recorded consolidated revenue of
Euro 39 Mn in 2022 (previous year: Euro 33 Mn). The profit after tax for the year was Euro
0.39 Mn as compared with the profit after tax of Euro 0.25 Mn. in the previous year. The
consolidated results of FC10 include results of its subsidiaries viz., Sedis SAS, Sedis
GmbH and Sedis Co Ltd in UK.
9.3. Great Cycles (Private) Limited (GCPL)
GCPL is the Company's subsidiary in Sri Lanka acquired in March 2018. The Company holds
80% of GCPL's equity capital. During the year under review, GCPL recorded revenue of `6
Cr. (Previous year: `32 Cr.) and registered loss before tax of `1 Cr. (previous year
profit before tax: `9 Cr.)
9.4. Creative Cycles (Private) Limited (CCPL)
CCPL is the Company's subsidiary in Sri Lanka acquired in March 2018. The Company holds
80% of CCPL's equity capital.
During the year under review, CCPL recorded revenue of `32 Cr. (Previous year: `77 Cr.)
and registered profit before tax of `3 Cr. (Previous year loss before tax: `14 Cr.).
9.5. CG Power and Industrial Solutions Limited (CG Power)
CG Power is the Company's subsidiary acquired in November 2020. The Company holds
58.05% of CG Power's equity capital. During the year under review, CG Power at a
consolidated level recorded revenue of `6,973 Cr. (previous year: `5,484 Cr.) and
registered profit before tax & exceptional items of `950 Cr. (Previous year: `504 Cr.)
CG Power has registered an impressive turnaround which only reaffirms the confidence of
the Board at the time of acquisition that CG Power would create better value for itself
and the Company in the coming years.
CG Power also declared and paid an Interim Dividend of `1.50 per share for the
financial year 2022-23.
9.6. TI Clean Mobility Private Limited (TICMPL)
TICMPL, the Company's subsidiary was incorporated on 12th February 2022.
During the year under review, TICMPL on a standalone basis registered a loss before tax
of `79 Cr.
During the year under review, IPLTech Electric Private Limited registered a loss before
tax of `33 Cr. from acquisition date.
During the year under review, Cellestial E-Mobility Private Limited registered a loss
before tax of `11 Cr. and Cellestial E-Trac Private Limited registered a loss before tax
of `13 Cr. from acquisition date.
9.7. Moshine Electronics Private Limited (MEPL)
During the year under review, MEPL recorded `6 Cr as revenue and registered a loss
before tax of `1 Cr. from acquisition date.
9.8. X2Fuels and Energy Private Limited (X2Fuels)
During the year under review, X2Fuels registered a loss before tax of `0.06 Cr. from
acquisition date.
10. Financial Review 10.1. Profits & Profitability
The Profit before Tax and exceptional items has registered a growth by 48%. All the
business segments of the Company maintained their focus on servicing customers, improving
efficiencies, controlling working capital and reducing resources employed in the business.
10.2. Capital Expenditure
The Company continues to assess the trends emerging in the industry and the changing
requirements of its customers and invests appropriately for the long-term, with a view to
servicing its customers in a more timely and efficient manner.
10.3. Interest Cost
The Company's interest cost during FY 2022-23 was `22 Cr. compared to `12 Cr. in the
previous year. The Company had a net debt of `69 Cr. (Net of Cash & Cash Equivalents
and investment in mutual funds) as on 31st March 2023 as compared to `65 Cr. as
on 31st March 2022.
10.4. Financial Ratios
The key financial ratios of the Company during the financial year compared to the
previous financial year are as under:
Sl. No. |
Financial Ratio* |
FY 2022-23 |
FY 2021-22 |
% change over previous year |
| 1 |
Interest Coverage Ratio (times) |
50.7 |
60.4 |
(19.2%) |
| 2 |
Debt-Equity Ratio (times) |
0.1 |
0.1 |
11.5% |
| 3 |
Net Profit Margin |
9.2% |
7.5% |
23.0% |
| 4 |
Return on Net Worth |
20.2% |
17.6% |
12.9% |
| 5 |
Return on Capital Employed |
27.6% |
22.6% |
22.2% |
| 6 |
Revenue Growth |
13.8% |
49.4% |
|
| 7 |
Debtors Turnover (times) |
10.4 |
9.9 |
4.7% |
| 8 |
Inventory Turnover (times) |
7.5 |
7.1 |
4.5% |
| 9 |
Current Ratio (times) |
1.1 |
1.1 |
2.9% |
| 10 |
Operating Profit Margin |
13.0% |
10.9% |
16.0% |
*Ratios are tracked by the Company on a standalone basis
10.5. Internal Control Systems
Internal control systems in the organisation are looked at as the key to its effective
functioning. The Company believes that internal control is one of the key pillars of
governance which provides freedom to the management within a framework of appropriate
checks and balances. Given the nature of business and size of operations, the Company has
designed and instituted a robust internal control system that comprises well-defined
organisation structure, roles and responsibilities, documented policies and procedures to
reduce business risks through a framework of internal controls and processes. These
controls ensure:
• Recording of transactions are accurate, complete and properly authorised;
• Adherence to Accounting Standards, compliance to applicable Statutes, Company
policies and procedures and timely preparation of financial statements;
• Effective usage of resources and safeguarding of assets;
• Prevention and detection of frauds/errors; &
• Efficient conduct of operations.
To ensure efficient internal control systems, the Company has a well-established,
independent and multi-disciplinary Internal Audit function that carries out periodic
audits across locations and functions. The scope and authority of the Internal Audit
function is derived from the Internal Audit charter duly approved by the Management. The
Internal Audit function reviews compliance vis-a-vis the established design of the
internal control, as also the efficiency and effectiveness of operations. Internal Audit
function is responsible for providing, assurance on compliance with operating systems,
internal policies and legal requirements as well as suggesting improvements to systems and
processes. It reviews and reports to management and the Audit Committee about compliance
with internal controls, and the efficiency and effectiveness of operations as well as the
key process risks. The Company also has established whistle-blower mechanism operative
across the Company.
In its continued efforts to further strengthen its Internal Audit process through
utilizing the services of a specialist agency in order to benefit from the best of
practices available (including the use of analytical tools) to monitor various processes,
the Company has re-appointed M/s. Pricewaterhouse Coopers ("PwC") as Internal
Auditors of the Company for the financial years 2023-24 and 2024-25. The Company is seeing
benefits from the professional approach and practises adopted by the said Internal
Auditors. The Audit Committee of the Board of Directors, comprising of independent
directors, regularly reviews the audit plans, significant audit findings, adequacy of
internal controls, compliance with accounting standards as well as reasons for changes in
accounting policies and practices, if any. The summary of the Internal Audit findings and
status of implementation of action plans for risk mitigation are submitted to the Audit
Committee every quarter for review, and concerns if any, are reported to the Board. This
process ensures robustness of internal control system and compliance with laws and
regulations including resource utilisation and system efficacy. Revenue and capital
expenditures are governed by approved budgets and the levels are defined by a delegation
of authority mechanism. Review of capital expenditure is undertaken with reference to
benefits expected in line with the policy for the same.
Investment decisions are subject to formal detailed evaluation and approved by the
relevant authority as defined in the delegation of authority mechanism. The Audit
Committee reviews the plan for internal audit, significant internal audit observations and
functioning of the Company's Internal Audit department on a periodic basis.
10.6. Internal Financial Control Systems with reference to the Financial Statements
The Company has complied with the specific requirements of the Companies Act, 2013
which call for establishment and implementation of an Internal
Financial Control framework that supports compliance with requirements of the said Act
in relation to the Directors' Responsibility Statement.
The Company's business processes are enabled by an Enterprise-wide Resource Platform
(ERP) as its core IT system. The operating management is not only responsible for revenue
and profitability, but for also maintaining financial discipline and accountability. The
systems and processes are continuously improved by adopting best in class processes,
automation and implementing latest Information Technology tools. The Company has a formal
system of internal financial control to ensure the reliability of financial and
operational information, and regulatory and statutory compliances. This is reviewed
regularly and tested by Internal Audit Team. The Company's business processes are enabled
by the ERP for monitoring and reporting processes resulting in financial discipline and
accountability.
11. Enterprise Risk Analysis and Management
The Company has an established risk assessment and minimisation framework. This
framework provides a mechanism to identify the risk, evaluation of likelihood of happening
and consequences. It also provides for assessment of options to mitigate the risk and
develop appropriate risk management plans. There are normal constraints of time,
efficiency and cost.
The Risk Management Committee of the Board of Directors reviews the risk mitigation
plans periodically to monitor the key risks of the Company and evaluate the management of
such risks for effective mitigation. During the year under review, the Risk Management
Committee met on 1st August 2022, 4th November 2022 & 22nd
March 2023 and reviewed the risks and mitigation plans of the divisions. Some of the risks
associated with the business and the related mitigation plans are discussed hereunder. The
risks given below are not exhaustive and the evaluation of risk is based on management's
perception.
11.1. Engineering Risk |
Why considered as Risk |
Mitigation Plan/Counter Measure |
| User Industry |
• Significant exposure to auto sector |
• New products/applications to existing customers |
| Concentration Risk |
• Time lag in pass through of input cost changes |
• Introduction of new products catering to non-auto users |
|
|
• Increase in exports volume with focused business development on
select product segments |
|
|
• Leverage application engineering skills for tubular solutions |
|
|
• To study the new opportunities that will emerge with the launch of
electric vehicles and plan for participation in the same |
|
|
• Drive efficiency improvement through Lean approach for sustainable
competitive advantage. |
| Technology |
• Cheaper alternatives for auto applications affecting revenue
streams |
• Imbibing new and relevant technologies |
| Obsolescence Risk |
|
• Equipment upgradations to address emerging demand for light
weighting and high strength tubes (stabilizer bar tubes) |
| Raw Material Risk |
• Volatility in steel price |
• Alliance with steel producers |
|
• Inconsistency in quality • High inventory holding |
• Back-to-back arrangement with customers to ensure timely recovery
of steel price increases |
|
|
• Global sourcing |
|
|
• Strategic sourcing including developing new grades by suppliers |
|
|
• Rationalization and standardization of grades |
|
|
• Move to products with higher value addition |
| Competition Risk |
• Competition from integrated steel mills |
• Consistent quality and timely delivery |
|
• New entrants with financial strength • Imports |
• Import substitution, development of new grades |
|
|
• Product range of offering leveraging all businesses of the Company |
|
|
• Innovate on products, process and applications |
|
|
• Leveraging metallurgy skills |
|
|
• Regional balancing and common capability across all plants |
|
|
• Digital initiatives for faster response |
| Export related risks |
• Increased trade protectionism and import tariff • Global
competition |
• Identification of new export markets and customers |
|
• Need for higher capability |
• Capability building |
|
|
• Focussing on new product categories and newer markets across
geographies |
|
|
• Continue participation in US AD/CVD reviews to reduce duty rates |
|
|
• Efficiency improvement through Lean approach for sustainable
competitive advantage |
11.2. Metal Formed Products
Risk |
Why considered as Risk |
Mitigation Plan/Counter Measure |
Product Risk |
• Slowdown in 2W industry growth |
• Widen profile across product and customer portfolio. |
|
|
• Continue to focus on cost reduction opportunities. |
|
|
• Improving focus on exports. |
Pricing Risk |
• Year-on-Year price reduction expectation |
• Relationship building and joint / dynamic estimation of cost
with OEMs leading to smooth price increase settlement. |
|
|
• Arrangement with customers for the timely recovery of steel
price increases in line with the industry standards. |
|
|
• Maximize the benefit from sourcing and consolidated buying to
reduce impact |
|
|
• Value Analysis / Value Engineering (VAVE) initiatives. |
|
|
• Optimal investment and reduced cost of operations. |
| Product Risk |
• Revenues are model specific |
• Continuous engagement with customers |
|
• Risk of product failures |
• Indigenization of equipment |
|
|
• Pursue options for other business using the same facilities |
|
|
• Model specific investments to be done by OEMs |
|
|
• More rigorous analysis of risks before taking up the project |
| Technology Risk |
• Adoption of Electric Vehicles |
• Engagement with major EV manufacturers. |
|
|
• Focus on adjacencies and exports. |
|
|
• Identification of new business opportunities. |
| Employee Risk |
• Increase in labour cost and non-availability of |
• Identifying talent and training for critical roles. |
|
skilled resource |
• Skill development of employees. |
|
• Gap in talent availability |
• Process automation |
| Sourcing Risk |
• Availability of raw material |
• Vendor relationship building |
|
• Dependency on few vendors |
• Strengthening planning system to ensure timely availability. |
|
|
• Identification of alternate source for critical items. |
11.3. Bicycles and Components
Risk |
Why considered as Risk |
Mitigation Plan/Counter Measure |
| Product |
• Decline in sales, revenue and profitability |
• Adapt to product alternatives like E-bikes |
| Obsolescence Risk |
• Increase in inventory |
• Export markets |
|
|
• Activations to promote cycling as a lifestyle/ fitness category |
|
|
• Monitor NPD (new product development) cycle and address the
exceptions periodically |
| Sourcing Risk |
• Raw material supply chain issues due to pandemic |
• Continuous upgrading of vendor capability through vendor score
card rating and closing the gaps, implementing Kaizens and ensuring timely delivery. |
|
• Volatility in volumes |
• Relationship building and ensuring stable volumes to keep the
supplier operations running through altering SoBs and rationalizing the supply base
continuously. |
|
• Continuous increase in raw material price |
• Reduce import dependency and pass on the increase to market,
ensuring commodity settlement to suppliers every month. |
| Competition Risk |
• Competitors investing in capacity expansion • Investment in
e-Cycle manufacturing plant to capitalize on domestic and exports volume |
• Increase focus on brand awareness & visibility initiatives |
|
|
• Launch of e-cycles targeting global market |
|
• International range licensing |
• Introducing new models with a healthy innovation funnel |
|
|
• Consistent quality and timely delivery |
| Volume & Profitability |
• Shift to mass premium from Premium |
• Be price competitive and leverage innovation |
| Risks |
• High price competition in specials |
• Premium imagery and designs at competitive price points |
|
• Increase in number of unbranded players with competitive offering |
• Star Multi Brand Outlets with a vision to enhance consumer
in-store experience and store footprint |
|
|
• Focus on optimized sourcing thereby have price competitive
products |
|
|
• Increase focus on brand awareness & visibility initiatives |
| Technology Risk |
• Lack of capacity and capability to handle large scale shift to
alloy bikes |
• Capability building for manufacture and assembly of alloy bikes |
|
|
• Frame alloy manufacturing |
|
|
• Water Decal establishing |
|
|
• Support Indigenization for all imported components except gears
& shifters |
|
|
• Establishing reliable source for high end bikes by approval of
alloy tube manufacturer |
|
|
• Development of alloy child parts |
11.4. General Risk |
Why considered as Risk |
Mitigation Plan/Counter Measure |
| Human Resource Risk |
• Build Talent Pipeline for meeting growth aspirations |
• Conceptualize and implement TI Talent Management approach as a key
focus area |
|
• Retention of talent |
• Coaching and team building |
|
• Availability and skill upgradation of |
• Individual career and development plan |
|
non-permanent workforce |
• Effective communication exercises |
|
|
• Continuous engagement with identified talent pool |
|
|
• Deskill operations |
|
|
• Continuously engage with contractors and contract labour for their
wellness & engagement. |
| Currency Risk |
• Foreign currency exposure on exports, imports |
• Early identification and monitoring of exposures |
|
and borrowings |
• Hedging of exposures based on risk profile. |
| IT/Cyber Related |
• Confidentiality, integrity and availability |
• Access controls |
| Risk |
|
• Secure Network Architecture |
|
|
• Infrastructure redundancies & disaster recovery mechanism |
|
|
• Audit of controls |
| Project Management |
• Delay in implementation |
• Effective project management |
| Risk |
• Increase in cost |
• Pre-implementation planning |
|
• Potential delay in stabilization of production. |
• Deployment of adequate resources |
|
|
• Effective monitoring |
12. Corporate Social Responsibility (CSR)
The Company, being part of the Murugappa Group, is known for its tradition of
philanthropy and community service. The Company's philosophy is to reach out to the
community by establishing service-oriented philanthropic institutions in the field of
education and healthcare as the core focus areas. The CSR Policy of the Company is
available on the Company's website at the following link: https://tiindia.com/csr-policy/.
As per the provisions of the Companies Act, 2013, the Company was required to spend `9.09
Cr. and had also carried forward an excess balance of `0.31 Cr. After adjustment of the
said excess carried forward balance, the minimum mandatory amount required to be spent
during the financial year 2022-23 was `8.78 Cr, against which, the Company spent `9.04 Cr.
towards identified CSR projects in the fields of education, health care and community
development during the year.
The Annual Report on CSR for 2022-23 is annexed to and forms part of this Report (refer
Annexure-B) as well as on the Company's website at the following link:
https://tiindia.com/wp-content/uploads/2023/07/CSR-Annual-Report-2022-23.pdf
13. Corporate Governance
The Company is committed to maintaining high standards of corporate governance. The
Company was wholly in compliance with the requirements of the Listing Agreement with the
Stock Exchanges as well as the SEBI Listing Regulations. A report on corporate governance
together with a certificate from the Practising Company Secretary is annexed in accordance
with the terms of the SEBI Listing Regulations and forms part of the Board's Report (refer
Annexure-C). The Managing Director and the Chief Financial Officer have submitted a
certificate to the Board regarding the financial statements and other matters in terms of
Part B of Schedule II [Corporate Governance] of the SEBI Listing Regulations. The Report
further contains details as required to be provided in the Board's Report on the policy on
Directors' appointment and remuneration including the criteria, annual evaluation by the
Board and Directors, composition and other details of Board committees,
implementation of risk management policy, whistle-blower policy/vigil mechanism, dividend
policy etc.
14. Business Responsibility and Sustainability Reporting
As required under the SEBI Listing Regulations which mandate the inclusion of a
Business Responsibility and Sustainability Report as part of the Annual Report for the top
1000 listed entities, the Business Responsibility and Sustainability Report forms part of
the Annual Report (refer Annexure-D).
The Business Responsibility Policy of the Company is displayed on the Company's website
at the following link: https://tiindia.com/business-responsibility-policy/ The report
emphasises reporting on the ESG (Environmental, Social and Governance) matters and
describes the initiatives taken by the Company with specific focus on ESG.
15. Human Resources
This year the focus has been on continuing the journey towards nurturing a high
performing work culture to achieve organisational goals. We continued to march ahead with
process discipline, creating more and more oneness across all verticals of TII and driving
a culture of high drive for achievement.
To foster the organisational oneness the theme of "One TII - Many possibilities -
Ample opportunities" was unveiled at the Annual Communication meeting. Employees can
aspire to grow within TII as the organisation itself is in the precipice of exploring
possibilities in newer business areas. A core focus of the organisation has been towards
employee engagement and well-being. Several focussed group discussions, manager
conversations have helped the organisation to move forward with a concrete plan to drive
engagement as a key metric. Insights from all the conversations have been translated into
tangible actions which are being deployed across various employee groups. Safety and
employee involvement continues to be a focus areas and in that regard various trainings,
audits and corrective actions are implemented across all Business units.
Company continues to lay emphasis on the initiatives that are part of its long-term
Human Resources Strategy. Significant work towards driving High Performance Work Culture
through standardization of metrics across various business units and arriving at
consistent People Productivity Index has helped identify various avenues to improve the
same. TI Way of working, by standardizing various policies and processes, is progressing
across all work locations. The adoption of TI Way will be a game changer as the Company
continues to pursue aggressive growth paths through several green field and M&A
activities.
Consistent and significant efforts have been put in place to ensure that the TI Talent
Development Engine (TDE) supports the growing needs of the leaders as the company
progresses ahead.
As part of the TDE, three senior leaders were nominated for the Harvard AMP to make
them future ready to take on leadership roles in existing as well as new businesses. 11
leaders have graduated this year from the group's Business Leadership Program and were
assigned additional responsibilities or new roles. A total of 20% of overall Managers are
going through development journeys to move to next level roles. The Talent Board continues
to guide, support and mentor the various developmental actions, interventions and suggest
appropriate next steps for accelerated talent development in TI. Lot of focus this year
has also been on improving the digital capabilities of the HR functions. A new system is
being implemented in phases and the journey towards paperless HR has started. These are
steps that the organisation is taking towards sustainable practices. The Company embarked
on its Lean (Kaizen) journey with the guidance from Japanese consultants in order to be
competitive, adapt changes to market & economy. The focus was to eliminate/reduce
waste in the value chain, create value to customer and be more productive in "what we
do" & the "way we do". The main focus will be on improving productivity
(daily despatches), quality improvement, reducing inventory & lead time, creating a
flow in production processes using lean tools like Takt time production, line balancing,
operator load balancing (Yamazumi), standard work combination, levelled production,
operator & machine cycle time reduction.
The total number of permanent employees on the rolls of the Company as on 31st
March 2023 is 3,038. Industrial relations continued to remain cordial at all the Company's
units during the period under review. The information relating to employees and other
particulars required under Section 197 of the Companies Act, 2013 read with Rule 5 of the
Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 will be
provided upon request. In terms of Section 136 of the Companies Act, 2013, the Report and
Accounts are being sent to the Members excluding the information on employees, particulars
of which are available for inspection by the Members at the Registered Office of the
Company during business hours on all working days of the Company up to the date of the
forthcoming Annual General Meeting. If any Member is interested in obtaining a copy
thereof, such Member may write to the Company Secretary in the said regard.
The disclosure with regard to remuneration as required under Section 197 of the Act
read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is attached and forms part of this Report (refer Annexure-E).
16. Prevention of sexual harassment at workplace
The Company has policy on prevention of sexual harassment at workplace in line with the
requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition
& Redressal) Act, 2013. An Internal Complaints Committee (ICC) to redress complaints
received regarding sexual harassment has been constituted in compliance with the
requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. The policy extends to all employees (permanent, contractual,
temporary and trainees). Employees at all levels are being sensitized about the Policy and
the remedies available thereunder. No complaints were received by the ICC during the year
under review and no complaint was pending as at the end of the year.
17. Employee Stock Option Scheme
During the year under review, the Company had granted 1,89,800 options to eligible
employees under its Employee Stock Option Plan viz., ESOP 2017. Details in respect of the
ESOP 2017 as required under the relevant SEBI Regulations are displayed on the Company's
website at the following link: https://tiindia.com/esop/
18. Directors' Responsibility Statement
The Board of Directors confirm that the Company has in place a framework of internal
financial controls and compliance system, which is monitored and reviewed by the Audit
Committee and the Board besides the statutory, internal and secretarial auditors. To the
best of their knowledge and belief and according to the information and explanations
obtained by them, your Directors make the following statements in terms of Section
134(3)(c) of the Companies Act, 2013: a) that in the preparation of the annual Financial
Statements for the year ended 31st March 2023, the applicable accounting
standards have been followed along with proper explanation relating to material
departures, if any; b) that such accounting policies as mentioned in the Notes to the
Financial Statements have been selected and applied consistently and judgment and
estimates have been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at 31st March 2023 and of the
profit of the Company for the year ended on that date; c) that proper and sufficient care
has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; d) that the annual Financial
Statements have been prepared on a going concern basis; e) that proper internal financial
controls to be followed by the Company have been laid down and that the financial controls
are adequate and were operating effectively; & f) that proper systems have been
devised to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
19. Auditors
M/s. S R Batliboi & Associates LLP, Chartered Accountants (LLP Identity
no.AAB-4295) were appointed as Statutory Auditors at the 14th Annual General
Meeting held on 2nd August 2022 for a period of four years viz., from the
conclusion of the said 14th Annual General Meeting till the conclusion of the
ensuing 18th Annual General Meeting. The remuneration payable to them for the
financial year 2022-23 has already been fixed at the 14th Annual General
Meeting.
The Company is required to maintain cost records in respect of Steel Products, Metal
Formed Products and parts & accessories of auto components of the Company and such
accounts and records are made and maintained. M/s. S Mahadevan & Co. (firm no.000007),
Cost Accountants were appointed as the Cost Auditors of the Company for auditing the cost
accounting records maintained by the Company in respect of the applicable products for the
financial year 2023-24. Necessary resolution for ratification of their remuneration in
respect of the aforesaid terms of appointment for the financial year 2023-24 forms part of
the Notice for the ensuing Annual General Meeting, which the Board recommends for the
shareholders' approval.
20. Related Party Transactions
All related party transactions that were entered into during the financial year under
review were on an arm's length basis and were in the ordinary course of business. The
Company did not enter into any materially significant related party contracts or
arrangements or transactions during the financial year which may have a potential conflict
with the interest of the Company at large or which is required to be reported in Form No.
AOC-2 in terms of Section 134(3) (h) read with Section 188 of the Act and Rule 8(2) of the
Companies (Accounts) Rules, 2014.
Necessary disclosures as required under the Indian Accounting Standards have been made
in the notes to the Financial Statements.
The policy on Related Party Transactions as approved by the Board is uploaded and is
available on the following link on the Company's website: https://tiindia.com/rpt-policy/
None of the Directors had any pecuniary relationships or transactions vis-?-vis the
Company.
21. Directors
During the year under review, the following key Board level changes were effected to
evolve and realign the senior management team after considering the growth aspirations in
the existing businesses, the number of new initiatives/businesses in the anvil and towards
long-term succession planning:
- Mr. M A M Arunachalam was appointed as a Whole-time Director (Key Managerial
Personnel), designated as the Executive Chairman for a 5-year term of Office from 1st
April 2022 to 31st March 2027 (both days inclusive);
- Mr. Vellayan Subbiah was appointed as a Whole-time Director (Key Managerial
Personnel), designated as the Executive Vice Chairman for a 5-year term of Office from 1st
April 2022 to 31st March 2027 (both days inclusive); and
- Mr. Mukesh Ahuja was appointed as Managing Director (Key Managerial Personnel) for a
5-year term of Office from 1st April 2022 to 31st March 2027 (both
days inclusive).
- Mr. Vellayan Subbiah, Executive Vice Chairman retires by rotation at the ensuing
Annual General Meeting to facilitate the compliance of the requirements of Section 152 of
the Companies Act, 2013 ("the Act") and being eligible, he offers himself for
re-appointment. The Board, based on and after taking into consideration the
recommendations of the Nomination and Remuneration Committee, recommends the re-appointment
of Mr. Vellayan Subbiah as Director, liable to retire by rotation only to comply with the
provisions of the Act, at the forthcoming Annual General Meeting.
All the Independent Directors of the Company have furnished the necessary declaration
in terms of Section 149(6) of the Act affirming that they meet the criteria of
independence as stipulated thereunder. In the opinion of the Board, all the Independent
Directors have the integrity, expertise and experience including the proficiency as
required to effectively discharge their roles and responsibilities in directing and
guiding the affairs of the Company and, are independent of the management.
- Mr. Sanjay Johri will be retiring at the conclusion of the ensuing Annual General
Meeting on completing his term of office as an Independent Director. The Board places on
record its grateful appreciation for the distinguished services rendered by Mr. Sanjay
Johri during his association, since August 2018, as an Independent Director of the
Company.
22. Declarations/Affirmations
During the year under review:
- there were no material changes and commitments affecting the financial position of
the Company, which have occurred between the end of the financial year of the Company to
which the financial statements relate viz., 31st March 2023 and the date of
this Report; & - there were no significant material orders passed by the regulators or
courts or tribunals impacting the Company's going concern status and its operations in
future.
23. Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has
appointed Mr. R Sridharan of Messrs R. Sridharan & Associates, a firm of Company
Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial
Audit Report is annexed herewith and forms part of this Report (refer Annexure-F).
The Company has ensured compliance of the Secretarial Standards issued by the Institute
of Company Secretaries of India during the period under review. Accordingly, no
qualifications or observations or other remarks have been made by the Secretarial Auditor
in his said Report.
24. Annual Return
A copy of the Annual Return of the Company is placed on the website of the Company and
the same is available on the following link: https://tiindia.com/financial-information/.
25. Key Managerial Personnel
Mr. M A M Arunachalam, Executive Chairman, Mr. Vellayan Subbiah, Executive Vice
Chairman, Mr. Mukesh Ahuja, Managing Director, Mr. K R Srinivasan, President
& Whole-time Director, Mr. AN Meyyappan, Chief Financial Officer and Mr. S
Suresh, Company Secretary are the Key Managerial Personnel (KMPs) of the Company as per
Section 203 of the Companies Act, 2013.
Mr. K Mahendra kumar ceased to be the Chief Financial Officer with effect from the
close of business hours on 8th September 2022.
26. Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange
earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with
Rule 8 of The Companies (Accounts) Rules, 2014 is annexed herewith and part of this Report
(refer Annexure-G).
The Directors thank all Customers, Vendors, Financial Institutions, Banks, State
Governments, Investors for their continued support to your Company's performance and
growth. The Directors also wish to place on record their appreciation of the contribution
made by all the employees of the Company resulting in the good performance during the year
under review.
|
On behalf of the Board |
| Chennai |
M A M Arunachalam |
| 15th May 2023 |
Executive Chairman |